Panama Private Interest Foundation

The Private Interest Foundation Law of Panama is based on the Panamanian Trust Law, 1994, and on the Liechtenstein Family Foundation Law of the Principality of Liechtenstein in Europe.

The Legislative Assembly in Panama approved Law No.25 of June 12, 1995, whereby private interest foundations are regulated.

Constitution

The foundation may be constituted by one or more natural or juridical persons, either by themselves or through third parties. Constitution may be obtained through the following methods:

1) Private instrument subscribed by the founder; his signature must be authenticated by a Notary Public;

2) Before the Notary Public of the place of constitution. The foundation instrument must include:

a) Name of the foundation, which must not be similar or identical to any other existing foundation in Panama. The word "foundation" must be included in the name.

b) Foundation Capital, the minimum amount of which is US$10,000.00.

c) Names and addresses of the foundation board members, to which the founder may belong.

d) Domicile of the foundation.

e) Name and domicile of resident agent of the foundation (usually lawyer or law firm), who must authorise the foundation instrument before its registration at the Public Registry Office.

f) Purposes of the foundation.

g) Procedures of appointing the beneficiaries of the foundation, to which the founder may belong.

h) The right to modify the foundation istrument when it is considered convenient.

i) Duration of the foundation.

j) Destiny of the foundation assets and liquidation procedure upon dissolution.

k) Any other lawful clauses the founder deems convenient.